Dimensional Fund Advisors LP Cuts Position in Penske Automotive Group, Inc. $PAG

Key Points

• Dimensional Fund Advisors LP reduced its stake in Penske Automotive Group by 10.7%, selling 152,538 shares and currently holds 1,274,850 shares valued at approximately $183.5 million.
• Penske Automotive Group announced a dividend increase to $1.32 per share, reflecting an annual yield of 2.9%, which will be paid on September 3rd, 2023.
• Several analysts upgraded their ratings on Penske Automotive Group, with Bank of America raising the target price from $190 to $205 and maintaining a "buy" rating.

Dimensional Fund Advisors LP lessened its position in shares of Penske Automotive Group, Inc. (NYSE:PAG - Free Report) by 10.7% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,274,850 shares of the company's stock after selling 152,538 shares during the quarter. Dimensional Fund Advisors LP owned approximately 1.93% of Penske Automotive Group worth $183,539,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Penske Automotive Group in the first quarter valued at about $140,000. Russell Investments Group Ltd. boosted its position in Penske Automotive Group by 34.0% during the first quarter. Russell Investments Group Ltd. now owns 6,005 shares of the company's stock worth $864,000 after acquiring an additional 1,525 shares during the last quarter. Callan Family Office LLC acquired a new position in Penske Automotive Group in the 1st quarter valued at about $217,000. Financial Engines Advisors L.L.C. boosted its holdings in Penske Automotive Group by 99.0% in the 1st quarter. Financial Engines Advisors L.L.C. now owns 5,788 shares of the company's stock valued at $833,000 after purchasing an additional 2,879 shares during the last quarter. Finally, CCM Investment Group LLC acquired a new position in Penske Automotive Group in the 1st quarter valued at about $297,000. Institutional investors and hedge funds own 77.08% of the company's stock.

Penske Automotive Group Stock Performance

NYSE:PAG traded up $6.1150 during trading hours on Friday, reaching $187.1050. 237,765 shares of the company's stock were exchanged, compared to its average volume of 240,553. The firm has a market capitalization of $12.36 billion, a price-to-earnings ratio of 13.02 and a beta of 0.87. The company has a 50-day moving average of $175.89 and a 200 day moving average of $164.81. The company has a quick ratio of 0.21, a current ratio of 0.90 and a debt-to-equity ratio of 0.16. Penske Automotive Group, Inc. has a 1-year low of $134.05 and a 1-year high of $188.43.

Penske Automotive Group (NYSE:PAG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $3.78 earnings per share for the quarter, topping analysts' consensus estimates of $3.56 by $0.22. The firm had revenue of $7.66 billion during the quarter, compared to analysts' expectations of $7.98 billion. Penske Automotive Group had a net margin of 3.13% and a return on equity of 17.43%. Penske Automotive Group's quarterly revenue was down .4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.61 EPS. Research analysts anticipate that Penske Automotive Group, Inc. will post 13.86 EPS for the current year.

Penske Automotive Group Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Friday, August 15th will be given a dividend of $1.32 per share. This represents a $5.28 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, August 15th. This is an increase from Penske Automotive Group's previous quarterly dividend of $1.26. Penske Automotive Group's payout ratio is currently 36.74%.

Penske Automotive Group declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 14th that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Stephens reissued an "equal weight" rating and issued a $140.00 price target on shares of Penske Automotive Group in a research note on Wednesday, June 11th. Bank of America upped their target price on shares of Penske Automotive Group from $190.00 to $205.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Morgan Stanley increased their price objective on shares of Penske Automotive Group from $180.00 to $190.00 and gave the company an "overweight" rating in a research report on Thursday, August 14th. Citigroup upped their target price on shares of Penske Automotive Group from $185.00 to $195.00 and gave the company a "buy" rating in a report on Monday, May 19th. Finally, JPMorgan Chase & Co. upgraded shares of Penske Automotive Group from an "underweight" rating to a "neutral" rating and upped their target price for the company from $155.00 to $175.00 in a report on Tuesday, August 5th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $181.00.

Insider Activity at Penske Automotive Group

In other Penske Automotive Group news, EVP Shane M. Spradlin sold 3,158 shares of the company's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $167.10, for a total transaction of $527,701.80. Following the completion of the transaction, the executive vice president owned 36,152 shares in the company, valued at approximately $6,040,999.20. This represents a 8.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Roger S. Penske sold 77,357 shares of the company's stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $161.37, for a total transaction of $12,483,099.09. Following the transaction, the chief executive officer owned 140,042 shares of the company's stock, valued at approximately $22,598,577.54. The trade was a 35.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 84,748 shares of company stock worth $13,748,660 in the last 90 days. Corporate insiders own 51.70% of the company's stock.

Penske Automotive Group Profile

Penske Automotive Group, Inc, a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors.